Hi,
I'd like to obtain confirmation from some brains far better than mine, that the result I see is correct, because I am surprised that the difference at the end of the target period is so small.
The purpose of this calculation is to determine the total amount after a period of 120 months.
The base figure is the starting point and assumes that after each month a 5% gain is made, less 25% of the profit made.
The second column, assumes a 10% gain is made after each month, less 25% of the profit made.
However, at the end of 120 months, the difference is only 1M.
How can this be when at 10% it is double the amount made per month?
I'd like to obtain confirmation from some brains far better than mine, that the result I see is correct, because I am surprised that the difference at the end of the target period is so small.
The purpose of this calculation is to determine the total amount after a period of 120 months.
The base figure is the starting point and assumes that after each month a 5% gain is made, less 25% of the profit made.
The second column, assumes a 10% gain is made after each month, less 25% of the profit made.
However, at the end of 120 months, the difference is only 1M.
How can this be when at 10% it is double the amount made per month?
| Cell Formulas | ||
|---|---|---|
| Range | Formula | |
| A3 | A3 | =(A2*1.05)-((A2*0.05*0.25)) |
| A5:B121,B3:B4,A4 | B3 | =(B2*1.1)-((B2*0.1*0.25)) |
